How to Build Wealth in Your 401K, 403B, or 457B | Ep. 2 | Winenance Wednesday
Updated: Dec 3, 2020
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What you’ll learn in this episode:
The four (4) reasons why your employer-sponsored retirement account is one of your BEST wealth-building tools:
You're more likely to become a millionaire. According to an analysis of more than 30 million retirement accounts from Fidelity Investments:
In the 2nd quarter of 2020, the number of 401(k) millionaires increased by 49% compared to the 1st quarter highs.
74,000 401K millionaires were made between March and June of this year!
224,000 total (up from 150,000).
The number of IRA millionaires increased about 30% to 204,000 (up from 157,000)
2. Automatic contributions force you to save. Saving consistently, and doing so over a long period of time, has a direct correlation with building and acquiring wealth.
3. Employer matches are employee benefits. Don't leave free money on the table by not getting your full match. This is money you're entitled to, and all you have to do is invest in yourself as much as your employer invests in you.
4. Tax advantages to contributing. The more you contribute to your employer-sponsored retirement account (up to $19,500 in 2020 for 401K, 403B, or 457B), the lower your taxable income will be for the following year. If you're invested in a Roth 401K, then you pay the taxes on your contributions up front, but then won't have to pay taxes on the money when you withdraw at retirement age.
Resources mentioned in this episode:
- Free Guide: How to Invest in Your 401K: A Step-By-Step Guide to Confidently Invest in Your Employer-Sponsored Retirement Account (here)
- Workshop: Building Wealth in Your 401K (here).
- Paycheck City 401K Calculator (here).
Challenge of the Week
Drink of the Week: Moscow Mule
1 Shot (2 oz) Vodka or Gin
1/2 Shot (1 oz) Lime Juice
6 oz Ginger Beer
Fill a glass with ice.
Pour vodka/Gin and lime juice over ice.
Top off with Ginger beer.
Stir and enjoy!
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